BY GT4 INVESTMENT PTY LTD — AUSTRALIA‑WIDE MORTGAGE & FINANCE EXPERTS

Buying your first home is a major financial step — and for many, the biggest challenge is saving the standard 20% deposit. Thanks to the First Home Guarantee scheme, eligible first‑home buyers can now purchase a property with just a 5% deposit, while avoiding costly Lenders Mortgage Insurance (LMI).

At GT4 Investment, we’ll guide you through how the scheme works, eligibility criteria, and how it pairs with state‑based incentives like those in Victoria for first‑home buyers.

🌟 What is the 5% Deposit Scheme?
The First Home Guarantee forms part of the broader Home Guarantee Scheme administered by Housing Australia. Under this scheme:
– You need a minimum deposit of 5% of the property value.
– The Australian Government provides a guarantee (up to 15% of the property value) to the lender, so you can borrow up to 95% without paying LMI.
– From 1 October 2025, the scheme is expanded: no cap on places, income limits removed, and higher property price caps set.

In short: for eligible buyers, the 5% deposit scheme means you can get into the property market sooner, with lower upfront costs, and less risk around mortgage insurance.

✅ Who is Eligible?
To qualify for the First Home Guarantee, generally you must:
– Be an Australian citizen or permanent resident aged 18 or older.
– Be a first‑home buyer (or meet “never owned or haven’t owned in past 10 years” for some streams).
– Have saved at least 5% deposit of the property’s value.
– Purchase a home to live in (owner‑occupier) and meet property price caps for your state/region.
– Apply via an approved lender participating in the scheme.

From October 2025, eligibility is simplified: the scheme will have unlimited places, no income caps, and larger property price caps.

💡 How the Scheme Works (Example)
Imagine you want to buy a home worth $700,000 in Melbourne:
– Standard path: 20% deposit = $140,000 + LMI (if borrowing more than 80%)
– With the 5% Deposit Scheme: You need only $35,000 deposit
– The government guarantees the remaining 15%, so the lender sees you’re lower risk → no LMI

With the scheme you move into your home much sooner, but you’ll still need to meet lender’s criteria (income, credit, serviceability) and cover other costs (legal, stamp duty, fees).

🏘️ Scheme in Your State & Link to Victorian Incentives
Victoria
In Victoria, first‑home buyers also benefit from stamp duty exemptions or concessions:
– If the dutiable value of your home is $600,000 or less, you may qualify for a full stamp duty exemption.
– If the value is between $600,001 and $750,000, you may get a concession (reduced duty) rather than full exemption.

Combining the federal 5% Deposit Scheme and the Victorian duty incentives can significantly reduce your upfront costs.

💰 Benefits of the Scheme
– Enter the market faster – You’re not waiting years to save 20%.
– Avoid LMI – Saves tens of thousands in many cases.
– Use major lenders – The scheme works with over 30 participating lenders across Australia.
– National reach – Available in all states and territories, including regional areas.
– Reduced deposit barrier – Makes home ownership more accessible for younger buyers or those without large family help.

🧭 How GT4 Investment Can Help You
Navigating the 5% Deposit Scheme is easier with expert support. At GT4 Investment we:
– Confirm your eligibility for the scheme and any state‑based incentives.
– Compare lenders that participate in the scheme and find competitive interest rates.
– Guide you through documentation, savings tracking, and pre‑approval.
– Help you understand total costs (including stamp duty, fees, loan structure).
– Provide ongoing support until settlement and beyond.

📌 Key Tips for First‑Home Buyers
– Save early for your 5% deposit, but also allow for other costs (stamp duty, legal fees, moving).
– Keep your credit clean (pay bills on time, avoid unnecessary debt).
– Get pre‑approval so you know your budget and can act when you find the right home.
– Choose a lender experienced in the scheme — not all lenders participate.
– Live in the property (owner‑occupier requirement) to meet eligibility.
– In Victoria, check if you can get full stamp duty exemption or concession.
– Consider your longer‑term loan structure even with a low deposit — talk with your broker about making repayments manageable.

📞 Ready to Buy with a 5% Deposit?
At GT4 Investment Pty Ltd, our team of experienced brokers will help you make your first home dream a reality — sooner.
Work with a broker who understands the federal scheme, state advantages, and your unique situation.

📧 denusha@gtfinancegroup.com.au | 📞 0426 822 971
Serving first‑home buyers Australia‑wide — Melbourne, Sydney, Brisbane, Perth, Adelaide, Canberra & Hobart.